Inflation: The rupee hit an all-time low of over $77 per dollar. Accordingly, the rise in prices for crude oil, along with other commodities, caused by the Russian-Ukrainian war, put little pressure on the rupee. The Ukrainian crisis pushed the price of Brent oil to $130 per barrel on Monday.
In addition, this trend is expected to cause an inflationary trend and eventually a change in monetary policy. In addition, it accelerated the sale of FII in the Indian stock market. “Higher inflation, rising crude oil and commodity prices, and FII outflows from the stock market are the main drivers behind the depreciation of the rupee,” said Anuj Gupta, vice president of research at IIFL Securities. “The rupiah lost another 1% against the dollar this morning and, trading at 76.87, hit a high of 77.08 in the morning.”
Deteriorating sentiment is likely to delay the fund’s expected major IPO. – flowing. “The continued selling of FPI in the stock markets is also putting pressure on the Indian currency.”